Solve this question Accounting Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares ofMini Corp.'s $5 par value common stock and $75,000 cash. When the patentwas initially issued to Maxi Co., Mini Corp.'s stock was selling at $7.50 pershare. When Mini Corp. acquired the patent, its stock was selling for $9 ashare. Mini Corp. should record the patent at what amount?a. $87,500b. $93,750c. $97,500d. $75,000

Step 1: Determine the number of shares issued.Step 2: Identify the fair value of the stock at the…

Answered: Mini Corp. acquires a patent from Maxi…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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